RBA Preview: The statement should not generate very much AUD volatility

The Reserve Bank of Australia (RBA) is unlikely to announce further policy changes at Tuesday's meeting while AUD/USD is bullish above 21-day moving average and 61.8% Fibo, according to Ross J Burland from FXStreet.

Key quotes

“The RBA statement is unlikely to surprise markets in way shape or form and should not generate very much AUD volatility.” 

“The RBA will likely repeat that they are ready to implement further measures as and when necessary, and will not raise rates until their growth, inflation, and employment targets are in view, which could lean a little heavy on the Aussie.”

“The statement is likely to be balanced with the Bank arguing that the economy will eventually recover and that the Australian financial system is resilient. The Aussie could get a lift as Australia is well placed to rebound.”

“The bulls have made ground back to test the 61.8% Fibonacci in a strong impulse. The pullback is hading into a support structure, and if it were to hold, the next impulse will seek a close above the 61.8% Fibo for prospects of recovery to test the 0.65 handle.” 

“There is some bearish divergence in Momentum and the AUD/USD pair has been rejected at the 61.8% Fibo below the key resistance area. While smothered below the 21-day moving average, the price could continue to the downside and extend below the 0.55 handle.”